Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q4 2024 Earnings Presentation
26 slides from Molson Coors Beverage's earnings presentation, Feb 13, 2025
Slide 1: Q4 & FY 2024 Results & Outlook
| Q4& FY 2024 MOLSON. RESULTS & OUTLOOK 4 Aff V6 f' r CANADIANS
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "tre
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS Americas annual U.S. core power results impacted by EMEA & APAC brands up ~1.7 Strong annual cash Continued U.S. volume meaningfully volume share flow generation while progress advancing headwinds (wind contributed to annual points vs Q4 2022 investing in our the Acceleration dow
Slide 4: Acceleration Plan Designed to Support Continued Growth
ACCELERATION PLAN DESIGNED TO SUPPORT CONTINUED GROWTH DRIVES PREMIUMIZATION Grow Core Power Aggressively Scale and Expand Brand Net Revenue Premiumize in Beyond Beer Our Portfolio Support Our People, Invest in Our Capabilities Communities, and Planet STRATEGIC ORGANIZATIONAL 4
Slide 5: Consolidated Fourth Quarter and Full Year 2024 Results
CONSOLIDATED FOURTH QUARTER AND FULL YEAR 2024 RESULTS YoY % YoY % Q4 2024* Change** 2024* Change** FINANCIAL VOLUME (HL) 18.585 -6.4% 79.618 -5.0% BRAND VOLUME (HL) 18.870 -3.4% 78.816 -2.5% NET SALES REVENUE $2,736 -1.9*** $11,627 -0.6%*** UNDERLYING INCOME $341 -0.9%*** $1,610 +5.6%*** BEFORE INC
Slide 6: Consolidated Q4 and Full Year 2024 Revenue and Volume
CONSOLIDATED Q4 AND FULL YEAR 2024 REVENUE AND VOLUME Q4 NET SALES REVENUE (NSR) 2024 NET SALES REVENUE (NSR) (CONSTANT CURRENCY) (CONSTANT CURRENCY) Consolidated NSR (1.9%)* Consolidated NSR (0.6%)* Financial volume decline (6.4%), partly offset Financial volume decline (5.0%), partly offset -1.9%
Slide 7: Consolidated Q4 and Full Year 2024 Brand Volume
CONSOLIDATED Q4 AND FULL YEAR 2024 BRAND VOLUME Q4 BRAND VOLUME % CHANGE 2024 BRAND VOLUME % CHANGE Consolidated Brand Volume (3.4%) Consolidated Brand Volume (2.5%) 2.6% Americas Brand Volume (2.2%) 2.2% Americas Brand Volume (3.0%) EMEA& U.S. brand volume impacted by cycling EMEA& U.S. brand volum
Slide 8: Consolidated Q4 2024 Underlying COGS/HL
CONSOLIDATED Q4 2024 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +5.1% Q4 2023 Q4 2024 Inflation & Other* Mix Volume Deleverage Americas +4.6% due to direct materials and manufacturing cost Inflation/Other* 200-basis point impact inflation, volume deleverage
Slide 9: Consolidated Full Year 2024 Underlying COGS/HL
CONSOLIDATED FULL YEAR 2024 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +3.8% Q4 2023 Q4 2024 Inflation & Other* Mix Volume Deleverage Americas +4.2% due to direct materials and manufacturing cost Inflation/Other* 150-basis point impact inflation, mix impacts
Slide 10: Americas Q4 and Full Year 2024 Results
AMERICAS Q4 AND FULL YEAR 2024 RESULTS KEY METRICS YOY % Q4 2024* YOY % Q4 2024* 2024* CHANGE CHANGE PERFORMANCE DRIVERS NET SALES REVENUE $2,174 -2.2%** $9,240 -1.7%** Q4: Favorable sales mix (lower contract UNDERLYING INCOME brewing), net pricing, lower MG&A spend $362 +0.5%** $1,590 +1.2%** and c
Slide 11: EMEA & APAC Q4 and Full Year 2024 Results
EMEA & APAC Q4 AND FULL YEAR 2024 RESULTS KEY METRICS YOY % YOY % Q4 2024* 2024* CHANGE CHANGE PERFORMANCE DRIVERS NET SALES REVENUE $569 -0.5%** $2,411 +4.1%** Q4: Favorable net pricing and sales mix (premiumization)and lower MG&A spend, UNDERLYING INCOME partly offset by lower financial volumes in
Slide 12: Capital Allocation: Investing in Our Business
CAPITAL ALLOCATION INVESTING IN OUR BUSINESS Capital Expenditures incurred for the full year 2024 of $721 million included Golden brewery modernization and improving capabilities designed to drive efficiencies, cost savings and our sustainability initiatives 12
Slide 13: Capital Allocation: Maintaining Leverage Ratio Below 2.5x
CAPITAL ALLOCATION MAINTAINING LEVERAGE RATIO BELOW 2.5X NET DEBT TO UNDERLYING EBITDA* Reduced our Net Debt by ~$180 million since December 31, 2023, ending the year at $5.2 billion Net Debt to Underlying EBITDA ratio of 2.1x at year end 2024 was in alignment with 4.8X 4.4X 3.8X long-term leverage
Slide 14: Capital Allocation: Returning Cash to Shareholders
CAPITAL ALLOCATION RETURNING CASH TO SHAREHOLDERS YOY DIVIDEND CHANGE DOLLARS INVESTED IN SHARE REPURCHASES +7.3% Announced a Repurchased ~3.4 million +7.9% quarterly cash shares for a total of dividend of $0.47 per share, ~$205 million* for the quarter up 6.8% YoY to be paid on Repurchased ~13.4 mi
Slide 15: 2025 Guidance
2025 GUIDANCE FULL YEAR OUTLOOK 2025E* NET SALES REVENUE GROWTH, Low-Single-Digit Growth CONSTANT CURRENCY UNDERLYING INCOME BEFORE INCOME Mid-Single-Digit Growth TAXES GROWTH, CONSTANT CURRENCY UNDERLYING EARNINGS PER High-Single-Digit Growth SHARE GROWTH UNDERLYING FREE CASH FLOW $1.3B +/- 10% UND
Slide 16: Key 2025 Guidance Assumptions and Drivers
Favorable net pricing and mix benefits (lower contract brewing and higher premiumization) 1 and incremental Non-Alc volume, partly offset by cycling 1.9M HL of contract brewing that exited our network in 2024 KEY 2025 In the first quarter, cycling elevated U.S. demand GUIDANCE 2 for core power brand
Slide 17: Molson Coors
MOLSON COORS fnray
Slide 18: Appendix
Appendix 18
Slide 19: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. (“U.S. GAAP”), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segme
Slide 20: Use of Non-GAAP Measures Continued
Use of Non-GAAP Measures Continued Underlying free cash flow (Closest GAAP Metric: Net Cash Provided by (Used in) Operating Activities) – Measure of the Company’s operating cash flow calculated as Net Cash Provided by (Used In) Operating Activities less Additions to property, plant and equipment, ne
Slide 21: Net Debt to Underlying EBITDA Reconciliation
Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016* Current portion of long-term debt and short-term borrowings 32.2 911.8 397.1 514.9 1,020.1 928.2 1,594.5
Slide 22: Reconciliation to Nearest U.S. GAAP Measures by Line Item
RECONCILIATION TO NEAREST U.S. GAAP MEASURES Reconciliation by Line Item (In millions, except per share data) (Unaudited) For the three months ended December 31, 2024 Marketing, Net income general and Income (loss) (loss) Diluted Cost of goods administrative before income attributable to earnings pe
Slide 23: Reconciliation for the Year Ended December 31, 2024
(In millions, except per share data) (Unaudited) For the year ended December 31, 2024 Marketing, Net income Net income (loss) general and Income (loss) (loss) attributable to Cost of goods administrative before income attributable MCBC per diluted sold expenses taxes to MCBC share Reported (U.S. GAA
Slide 24: Reconciliation to Underlying Income Before Income Taxes by Segment
(5) During the third quarter of 2024, we recorded a $36.6 million adjustment to net (income) loss attributable to noncontrolling interests related to the change in redemption value of CBPL. See the Consolidated Performance table earlier in this document for further information on this adjustment. Re
Slide 25: Underlying Depreciation and Amortization and Net Interest Reconciliation
Underlying Depreciation and Amortization Reconciliation (In millions) (Unaudited) For the three months ended For the years ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 U.S. GAAP depreciation and amortization $ 247.3 $ 174.2 $ 759.4 $ 682.8 (1) Accelerated depreciatio
Slide 26: Net Debt and Net Debt to Underlying EBITDA Ratio
(1) Included in net cash provided by (used in) investing activities. (2) Included in net cash provided by (used in) operating activities and primarily reflects costs paid for restructuring activities for the years ended December 31, 2024 and December 31, 2023. Net Debt and Net Debt to Underlying EBI
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